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CONSUMERS' BUYING BEHAVIOR ON ONLINE SHOPPING: AN UTAUT AND LUM MODEL APPROACH

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Internet has gained status of as a dynamic commercial platform, more than a rich source of communication. It has intensified the complexities of the simple act of buying. “Google” has become the generic term for “searching information”. Traditional buying by individuals has taken the complex mixture of store, mall, television, internet, mobile- based shopping. Not only developed western-countries but even Asian countries, with poor infrastructure and low internet penetration rates, are equally adopting online buying. Indeed, a simple search combining the terms “online” and “buying” or “ shopping” results into more than 15000 results on any academic database source. A review of selected published work in the area of “online buying” reveals that a wide range of topics have been explored and a rich theoretical framework in the form of different models is inexistent. This paper aims to present a comprehensive framework of the relevant literature available in the field of online buying behavior, in the form of different theories, models and constructs; and research results based on them. Tradition 5-staged model of consumer behavior has different stages- need identification, information search, evaluation of alternatives, buying and post purchase evaluation. Additionally, for online buying behavior the stages involved in online buying can be divided into: attitude formation, intention, adoption and continuation with online buying. Most important factors that influence online buying: attitude, motivation, trust, risk, demographics, website etc. are widely researched and reported. “Internet adoption” is widely used as foundation framework to study “adoption of online buying”. Post adoption or continuation with online buying is the area which still needs substantiate research work. Current state of this emerging field offers the potential to identify areas that need attention for future researchers. Through review of online buying literature available, this paper offers theoretical basis to the academicians, practitioners and web-marketers. In addition, the clear understanding of the online buying behavior can provide the opportunities for designing new capabilities and strategies that would quench online buyers’ thrust on value.

This study explores the differences between buyers and non-buyers in the adoption of electronic purchase intention in Colombia. Based on the Unified Theory of Acceptance and Use of Technology (UTAUT), a theoretical model that includes a set of five variables is established: performance expectations, effort expectations, social influence, facilitating conditions, and risk. The empirical results obtained from a final sample of 1,836 surveys emphasize the importance of performance expectations for both groups. Social Influence is another determinant of electronic purchase as well. In addition, an exploratory study of the moderating effect of the educational level and socioeconomic status for each group was performed, finding strong evidence of the influence of these demographic variables, which suggests that, as a conclusion that makes a great contribution to this country, access to electronic shopping is strongly related to educational level and socioeconomic status.

International Journal of Advanced Computer Science and Applications , 2019

Abstract: E-Commerce tools have become a human needs everywhere and important not only to customers but to industry players. The intention to use E-Commerce tools among practitioners, especially in the Malaysian retail sector is not comprehensive as there are still many businesses choosing to use expensive traditional marketing. The research applies academic models and frameworks to the real life situation to develop a value proposition in the practical world by considering 11Street as the company under study and comparing it with Lazada as a leading competitor in the market. The objectives include identification of customers’ perception of a value for E-Commerce Businesses, followed by critical evaluation of existing value proposition of 11Street with Lazada to identify gap and finally to propose a new value proposition for 11street. This paper first identifies customer perceived value of E-Commerce followed by critical review of existing value proposition of 11Street and then comparing and contrasting with the leading player Lazada. By the end of this research, a new consumer value proposition proposal for 11Street proposed for consideration in matching with the Malaysian consumers’ value criteria.

This paper investigated factors that affect e-shopping acceptance among Nigerian students of tertiary institutions. The extended Unified Theory of Acceptance and Use of Technology (UTAUT2) model formulated by Venkatesh, Thong and Xu (2012) was adopted with some adjustments. The predictors of the model are performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic motivation, price value and habit. Since the researchers wanted to study technology adoption in the context of service delivery quality, a review of relevant literature suggested designing an integrated model that would determine the influence of technology adoption expectancy and service quality variables on e-shopping adoption could yield comprehensive results. To achieve that, three key predictors from the Service Quality (SERVQUAL) model namely, reliability, responsiveness and empathy were integrated into the conceptual framework, which yielded the research model that was employed to determine the factor(s) that significantly affect adoption of e-shopping. The objectives of this study were to identify online shopping strategies of the e-tailers, to determine the students' perception of e-shopping and to determine the relationship between the predictors and e-shopping adoption. The integrated model, from which 10 hypotheses of this study were derived, measured the responses of 380 undergraduate (university) students. A pre-tested and validated 40-item questionnaire was administered to the respondents. The reliability coefficient of the items ranged from .755 to .876, which was high. A conclusion was drawn and some recommendations for future research were outlined.

Adoption of Online shopping as being the latest purchasing channel in this decade of 24th century, particularly among the University students compared to the traditional shopping method as means of adoption of Technology Acceptance Method (TAM). Although, it is not clear what drives consumers to shop online and whether these numbers could be even increase if more attractive online stores were developed. This research seeks to critically explore and understand the social factors which influence the consumer intention to shop online, in student’s attitudinal behaviour. There has been an argument from different previous reviews concerning the objective and aim of this research (e.g. Davis, 1989; Monsuwe et al., 2004) but based on framework. So, therefore the study extend such framework which required re-examined and testing of the factors in order to make it more open for application in research context and also include students as consumers satisfaction to the definition of online shopping as recent factor to be consider. Mixed method strategy (quantitative and qualitative method) was adopted to explore and investigate validity and reliability of such social factors that drives consumers’ intention and attitude respectively of their demographic, role of product characteristics, situational factors, impact of previous experience and level of trust and satisfaction with web-stores. Based on the relevant literature review, therefore, the researcher carried out regression analysis test and thematic approach on the relative hypothesis. And the results of the regression analysis, manual statistical calculation and thematic approach (pattern) demonstrate that the social factors influence students’ intention and attitude toward online shopping with; (a) age and gender as basic factors, (b) product types like ticket/holiday booking and fashion, (c) ease of use, navigation and flexibility of web-site (d) usefulness of available information, effective for searching from various site and enjoyment from previous experience and, (d) quick delivery, problem solving with safety and security was found as satisfaction and trust of not just shopping presently but also using internet to shop in future.

Charles Dennis is a Senior Lecturer at Brunel University, London, UK. His teaching and research area is (e-)retail and consumer behaviour – the vital final link of the Marketing process – satisfying the end consumer. Charles is a Chartered Marketer and has been elected as a Fellow of the Chartered Institute of Marketing for work helping to modernise the teaching of the discipline.

On-line shopping has seen an unprecedented growth globally, which also opens up new business avenues for stakeholders such as online retailers, e-commerce business platforms, banks and internet service operators. As per " India's Digital Leap–The Multi Trillion Dollar Opportunity " a report by Morgan Stanley, India's on-line shopping is expected to grow at an annual rate of 30% to reach about $200 billion for gross merchandise value by year 2026. Online shoppers in India are expected to grow from 14% of total internet base in 2016 to about 50% in 2026. Seeing this significant growth, the objective of the research paper is to identify and assess the factors influencing the adoption of online shopping and behavioral intention of online shoppers in Delhi/NCR, for which Exploratory, Descriptive and Causal research design has been adopted. This study had validated UTAUT model.

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Home > SAS > Economics and Finance > Applied Economics Theses > 29

Applied Economics Theses

Impact of online shopping on shopping malls, department chair.

Frederick Floss, Ph.D.

Xaioxing Yan , State University of New York College at Buffalo - Buffalo State College Follow

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Applied Economics, M.A.

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Eugene Chaas, M.A., C.F.A.

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Theodore Byrley, Ph.D., C.F.A.

The growth of e-retail has been a major discussion in the shopping characteristics of contemporary society. This has been a major concern as people strive to relate the exponential growth of online shopping to the recent decline in the growth of shopping malls. Various studies have significantly investigated the growth of online shopping and have always mentioned the impact of online shopping on shopping malls to be a negative one. This study focuses on testing that hypothesis. By exploring the possible relationship between certain factors such as the number of shopping malls and the percentage increase in online shopping retail, this study performs an analysis to prove this common assertion that online shopping negatively impacts shopping malls. The study uses Amazon online shopping company as a representation of the entire online shopping platform in the US. The analysis is carried via multiple linear regressions on the online shopping characteristics and those of the shopping malls.

Recommended Citation

Yan, Xaioxing, "Impact of Online Shopping on Shopping Malls" (2018). Applied Economics Theses . 29. https://digitalcommons.buffalostate.edu/economics_theses/29

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Environmental Analysis of US Online Shopping

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Since the advent of the Internet in the 1990s, there has been a significant increase in online shopping in the United States. As online shopping keeps growing, so does the online retail industry. Multiple players are investing either through pure online retailing or by click and mortar retailing, which also has a physical presence and a face-to face experience with their customers. While significant research has been done on the operational, marketing, branding and buying behavior dimensions of both retailing processes, there have been very limited studies on their comparative environmental impacts. This thesis attempts to estimate and compare the carbon footprint of the shopping process through ten consumer buying behaviors representing different combinations of the search, purchase and return phases of the shopping process for three representative products (electronics, clothing and toys). Using Monte Carlo Simulation, multiple scenarios of supply chain configurations, consumer transportation choices, urban density, packaging and item bundling are evaluated. Results show that online shopping is the most environmentally friendly option in a wide range of scenarios. However, as more consumers leverage traditional brick-and-mortar alternatives to their online buying behaviors, some of the environmental savings quickly erode.

Author: Dimitri Weideli Ecole Polytechnique Fédérale de Lausanne – EPFL Lausanne, Switzerland Research carried out at MIT Center for Transportation & Logistics, Cambridge MA, USA

Advisors: Dr. Edgar E. Blanco (MIT), Professor Naoufel Cheikhrouhou (EPFL), Dr. Anthony Craig (MIT)

This thesis project won BG's 2013 "System and Sustainable Development" Prize. Read the full article on Dimitri's win here .

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America has long been a nation of shoppers, and that is as true online as it is in the physical world. The earliest modern e-commerce transactions date to just 1994, but by 2015 Americans were spending nearly $350 billion annually online – or roughly 10% of all retail purchases, excluding automobiles and fuel. Pew Research Center surveys of digital commerce tell a similar tale. When the Center first asked about online shopping in a survey conducted in June 2000, just 22% of Americans indicated that they had ever made a purchase online. But in the intervening years that figure has increased nearly fourfold: Today, 79% of Americans say they make purchases online.

And in an era of widespread social media use and smartphone access, many Americans are incorporating these devices and platforms into their purchasing behaviors. Roughly half (51%) of Americans report making online purchases using their cellphones, while 15% have purchased something by following a link on social media sites such as Facebook or Twitter.

A substantial majority of Americans are online shoppers, but for most this behavior is a relatively infrequent occurrence. Some 15% of Americans say that they make purchases online on a weekly basis (4% do so several times a week, while 10% do so about once a week) and 28% shop online a few times a month. On the other hand, nearly six-in-ten Americans say they buy online less often than a few times a month (37%) or they never make any online purchases (20%).

And while each of these online shopping behaviors are relatively common across a wide range of demographic groups, younger adults in particular are especially likely to utilize cellphones and social media platforms to engage in commercial activity. Some 90% of 18- to 29-year-olds ever buy items online, while 77% have purchased something using their cellphones and 24% have bought something by following a link on social media. By contrast, a majority (59%) of those 65 and older ever generally make online purchases–but only 17% have bought something using their cellphones and just 5% have done so through a social media link.

Two-thirds of online shoppers generally prefer buying from physical stores, although pricing differences are ultimately what drives most Americans’ purchasing decisions

Despite the large share of Americans who engage in online shopping and the potential conveniences that come with buying online, a majority of online shoppers indicate that – all things being equal – they actually prefer to do their shopping in physical stores. Some 65% of online shoppers indicate that, when given the choice, they generally prefer to buy from physical locations; 34% indicate that they generally prefer to buy online.

As might be expected, the most dedicated online shoppers tend to express a relatively pronounced preference for shopping online as opposed to shopping in physical stores. Among Americans who make online purchases on a weekly basis, 62% indicate that they generally prefer to buy online, while 37% generally prefer to buy from physical stores. But among those who buy online on a monthly basis, 42% prefer online shopping while 58% prefer buying from physical locations. And among those who make online purchases even less frequently, just 18% prefer buying online – with 82% indicating that they prefer to shop in physical stores.

But even as many online shoppers express preferences for physical stores in the abstract, their ultimate decision of where to buy something often comes down to price. When asked a second question about their relative preferences for online and in-person shopping that incorporates pricing, fully 65% of online shoppers indicate that if they needed to make a purchase they would probably compare the price they could get online with the price they could get from physical stores and choose whichever one offered them the best deal. Another 21% of online shoppers say they would likely buy from stores without looking at prices online, while 14% indicate they would buy online without looking at prices in physical stores.

Users who frequently shop online are substantially more likely to say that they would typically choose to make purchases by simply buying online without visiting stores: 28% of weekly online shoppers say that they would likely do this if they needed to buy something, compared with 17% of monthly online shoppers and just 6% of those who buy online less often. But even among these frequent online shoppers, 62% say that they would typically compare the price they could get online and the price they could get in physical stores and choose whichever one is cheapest.

When buying something for the first time, Americans especially value the ability to compare prices and ask questions

Americans take a number of factors into consideration when shopping for something that they haven’t purchased in the past – especially the ability to compare prices from multiple sellers and to ask questions about what they are buying. When asked about the importance of seven different factors when buying something for the first time, 86% of Americans say that the ability to compare prices from several different sellers is either extremely (42%) or somewhat (44%) important, while a similar share say that being able to ask questions is extremely (42%) or somewhat (41%) important.

Other factors that Americans consider important include the ability to buy from stores or sellers they are familiar with (34% of Americans describe this as extremely important); the ability to read ratings or reviews that other people have posted online (32%); the ability to look at or try out the product in person (30%); and the ability to get advice or recommendations from people they know (23%). The ability to buy online – without having to make a trip to the store – ranks as the least important factor: just 42% of Americans say that this is at least somewhat important to them when buying something for the first time, and only 10% describe it as extremely important.

Regardless of their demographic characteristics, when buying something for the first time most Americans assign greater importance to being able to look at or try the product in person than they do to being able to buy online without making a trip to the store. However, frequent online shoppers are one of the few groups who place more importance on being able to buy online. Nearly three-quarters (72%) of weekly online shoppers say that being able to buy online without having to make a trip to the store is important to them when buying something for the first time (20% say it is extremely important). Meanwhile, a slightly smaller share (66%) says it is important to be able to try something out in person (with 15% saying this is extremely important).

Many Americans are using their cellphones while inside physical stores to help with purchase decisions or to get a better price

Today cellphone ownership is nearly ubiquitous, and roughly two-thirds of Americans have smartphones. And as the reach of these mobile devices have expanded, many consumers are using them to augment and assist with their physical and in-person purchasing experiences.

The survey asked about four different ways that people might utilize their mobile phones while making purchasing decisions inside physical stores and found that calls for advice and assistance are especially common: Nearly six-in-ten Americans (59%) say that they have used their cellphones to call or text someone while inside a store to discuss purchases they are thinking of making. Just under half (45%) have used their phones while inside a store to look up online reviews or to try and find a better price online for something they are thinking of purchasing. And a relatively small share of Americans (12%) have used their cellphones to physically pay for in-store purchases.

As noted above, a majority of Americans under the age of 50 have used cellphones to purchase something online – and this group is also especially likely to utilize their cellphones while making in-store purchasing decisions. Fully 70% of 18- to 49-year-olds have used their cellphones to call or text someone from inside a store to ask for purchasing advice, while 62% have used their phones to look up online reviews of something they were thinking of purchasing or to see if they could find a better price online. And nearly one-in-five (18%) have swiped their phones at the register to pay for purchases.

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Online shopping has grown rapidly in u.s., but most sales are still in stores, on alternative social media sites, many prominent accounts seek financial support from audiences, for shopping, phones are common and influencers have become a factor – especially for young adults, payment apps like venmo and cash app bring convenience – and security concerns – to some users, most popular.

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